Tag: UFC antitrust lawsuit

UFC Antitrust Lawsuit: Settlement Rejected, Trial Looms in October

UFC Antitrust Lawsuit UpdateThe UFC antitrust lawsuit recently had some major developments. The UFC had proposed a $335 million settlement to put…

UFC Antitrust Lawsuit Update

The UFC antitrust lawsuit recently had some major developments. The UFC had proposed a $335 million settlement to put an end to the lawsuit. This settlement would have paid out over $100,000 to nearly 500 of the 2,000 fighters involved. However, on July 30, 2024, Judge Richard Boulware rejected this proposed settlement.

The judge had issues with how little it did to help current fighters and was concerned that the UFC could continue its restrictive practices in the future. Now, the case is scheduled to go to trial on October 28, 2024, with a status conference set for August 19, 2024, to iron out the details.

UFC Antitrust Lawsuit Explained

Le vs. Zuffa, the UFC Antitrust Lawsuit, has been a long-running legal battle that started back in 2014. A group of current and former fighters accused the UFC of using anti-competitive tactics to dominate the MMA market, which they say kept their pay low and restricted their ability to fight elsewhere. This lawsuit covers fighters from 2010 to 2017 and has since been expanded to include fighters from 2017 to now.

The basics of the case are that UFC fighters, as private contractors, cannot earn their true value on the free market because the UFC used tactics to destroy the market. As a hypothetical, as a contractor, you can test your value with different employers and negotiate. But, as a fighter, there is no longer any organization such as Strikeforce or Affliction to really compete and offer the fighters reasonable pay. Once the market was destroyed the UFC can push down fighters’ pay knowing they have no other reasonable options.

The core of the lawsuit is about the UFC allegedly using its dominant position to control fighter pay and impose restrictive contract terms, which hurt competition. Judge Boulware was particularly worried about newer UFC contracts that included arbitration clauses and class action waivers, which could prevent similar lawsuits in the future.

After some point during the UFC Antitrust Lawsuit, the UFC offered to settle with a $335 million number. While both parties agreed, the judge involved did not. The UFC wasn’t happy about this decision. They released a statement saying they strongly disagreed with the judge’s ruling. They argued that the settlement was well-negotiated and in the best interest of the fighters, far surpassing typical antitrust settlements. They felt the judge disregarded the expertise of the involved lawyers and mediators.

For the fighters to win, they need a unanimous jury verdict, and even then, the UFC could appeal, dragging the case out for years. Some argue that accepting the settlement would have provided immediate financial relief and some changes, even if limited.

There is no projected end in sight for the UFC Antitrust Lawsuit. It could last decades more and no one knows which way it will land.

Questionable arbitration clause could cost Conor McGregor big money in UFC’s $335 million antitrust settlement

MixCollage 19 Jul 2024 03 24 PM 8804After making millions of dollars betting on Nate Diaz and a couple of football matches, Conor McGregor stands to…

MixCollage 19 Jul 2024 03 24 PM 8804

After making millions of dollars betting on Nate Diaz and a couple of football matches, Conor McGregor stands to make a lot more from the UFC’s $335 million class-action settlement.

So long as the judge signs off.

Last week, news broke that Judge Richard F. Boulware was not entirely comfortable putting his stamp of approval on a settlement that could squash an antitrust case filed against the promotion more than a decade ago.

Boulware is expected to deliver his decision next week. If he ultimately decides to sign off on the deal, McGregor will stand to bank $7 million from the deal — more than any of the other 1,200 fighters represented in the suit.

Still, McGregor is being massively underpaid due to a questionable arbitration clause that was added to his contract at some point. The compensation he’s set to receive is for illegally-suppressed wages from 2014-2017. In the three years that followed, ‘Mystic Mac’ faced Floyd Mayweather, Khabib Nurmagomedov, and Donald Cerrone.

For those fights, he is only expected to pocket a flat fee of $3,000.

Conor McGregor

“There’s no way you get an amount that small if fighters didn’t sign waivers, the very top guys,” UFC antitrust case expert Josh Nash said on the Hey Not The Face podcast. “So, you’re asking, does Conor McGregor get the money? He should get about 10 percent of whatever he earned in the [2017-2020] period. But, it seems very likely that he might get the amount that all the people that signed the waiver get, which is $3,000” (h/t MMA Mania).

Conor McGregor could opt out of his arbitration clause

As it stands, the UFC may be going back to the negotiating table, or possibly a trial, after Judge Boulware seemingly suggested that the $335 figure simply isn’t enough.

The UFC was initially accused of stiffing fighters out of as much as $1.6 billion with treble damages pushing the punishment for that up to as much as $4.8 billion. If the case ends up going to a jury trial, it could be a situation of big risk and big reward for the fighters involved.

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Meanwhile, McGregor could potentially opt out of the 2017-2020 class so he can use the arbitration clause in his favor.

“It would cost him a lot of money,” Nash said. “Hundreds of thousands of dollars — perhaps even millions. Because you’d have to hire your own experts and do all the analysis and stuff the antitrust trial did again. But, go into arbitration, because truthfully, someone like McGregor, I think you could realistically make an argument that he’s owed $100 million by the UFC.

“If you’re really under a waiver, Conor McGregor and fighters like him, the very top guys — it’s it’s not financially possible for most fighters to do this,” Nash continued. “But, for the very top guys, I would think about opting out of the [2017-2020] class and going into arbitration.”

Conor McGregor

It’s hard to imagine McGregor taking that path which would likely burn some bridges with the UFC. But when millions of dollars are at stake, anything can happen.

Documents reveal how the UFC’s $335 million antitrust lawsuit settlement will be distributed to fighters

Documents reveal how the UFC's $335 million antitrust lawsuit settlement will be distributed to fightersOn Tuesday, May 21, parties in the UFC antitrust lawsuits filed a Motion for Preliminary Approval of the Settlement….

Documents reveal how the UFC's $335 million antitrust lawsuit settlement will be distributed to fighters

On Tuesday, May 21, parties in the UFC antitrust lawsuits filed a Motion for Preliminary Approval of the Settlement. The documents revealed the amount of money the plaintiffs’ attorneys and the fighters in the suit are likely to receive after the promotion settled with a total payout of $335 million.

According to a report from MMA Payout, attorneys representing the fighters are requesting no more than 1/3 of the UFC Settlement Fund plus interest, equating to roughly $10.05 million, and reimbursement of litigation expenses “of no more than $11 million” for an amount totaling just a hair over $21 million.

UFC lawsuit antitrust

The remaining $314 million will be distributed between 1,950 fighters across the two classes — the [Cung] Le Class and the [Kajon] Johnson Class. However, it should be noted that some fighters in the suit are represented in both classes. The Le Class, which consists of 1,290 members will receive 75% of the Settlement Fund while the remaining 25% will go to the Johnson Class, comprised of another 1,140 members.

The plan of allocation would provide Le Class members an award from the Settlement equaling 25% [or more] of their total earnings from bouts from the Le Class period. The Le Class will be divided based on the number of fights in the UFC and their compensation at the time. The minimum amount of recovery is $8,000.

UFC lawsuit antitrust
UFC lawsuit antitrust

Certain Fighters under the Johnson Clash to receive 10% of their lifetime UFC earnings in settlement

Per the report, “Certain claimants from the Johnson Settlement Class will receive as much as 10% of their lifetime bout earnings.”

Payouts will also depend on whether or not the fighter had an arbitration agreement in its contract for the Johnson Class as the UFC changed its contract to include an arbitration provision during the Johnson time period. Those with arbitration provisions will receive $5,000.

UFC lawsuit antitrust

Though he was not party to the lawsuit, former UFC fighter Nate Quarry will receive a $250,000 settlement for his claims which were outside the timeframe set by the parties in the lawsuit and was therefore left out.

Settlements will be sent out in separate payouts starting November 1, 2024, and again on April 1, 2025.

Information and screenshots courtesy of Jason Cruz

Unsealed lawsuit documents detail dana white’s reaction to CM Punk Salary Backlash from UFC Fighters

Dana White and CM PunkDana White and the UFC have always worked, both publicly and privately, to keep fighter salaries out of the…

Dana White and CM Punk

Dana White and the UFC have always worked, both publicly and privately, to keep fighter salaries out of the public eye.

While the UFC CEO’s policy was to not reveal a fighter’s pay unless they had misrepresented it to the public, White is well aware that athletes would regularly disclose their earnings to one another. That bit of information comes according to a 2017 deposition for the UFC antitrust lawsuit that was recently unsealed by federal judge Richard Boulware.

“All the fighters know what other fighters are making,” White said. “They all talk. They all know. Even guys who say they don’t want their number out there, they tell” (h/t MMA Fighting).

As expected, it occasionally led to flare-ups among fighters with one example coming to White’s mind regarding a professional wrestler who had signed with the promotion before having any professional fights under his belt.

“It just happened recently again, too,” White said in the deposition. “We had some guy that was — that was paid a certain amount of money and never — oh, the professional wrestler that we brought in. Not Brock [Lesnar], the other one.”

“CM Punk?” the attorney asked.

“Oh, yeah,” White replied. “People went crazy when they saw what he got paid. … Even the women.”

Punk’s disclosed payout for his promotional debut at UFC 203 against Mickey Gall was $500,000, however, he was actually paid more than double that figure. Per a report from Bloody Elbow and newly unsealed UFC lawsuit documents, Punk was paid a whopping $1,042,736. The information was made public as part of the class action lawsuit being brought against the promotion by more than 1,200 fighters who have in the past or currently work with the UFC.

The host of UFC veterans suing the promotion for antitrust violations has made fighter pay, and the UFC’s public and private communication about it, a key part of its case by arguing that the promotion conspired to lower fighter pay as part of a scheme to monopolize the market for top-tier MMA fighters. 

Was Dana White Justified in Giving CM Punk a Bigger Piece of the Pie?

According to a copy of CM Punk’s contract which was unsealed in the lawsuit, the former AEW star who recently returned to WWE after nearly a decade, jumped straight toward the top of the UFC’s disclosed pay scale with any additional money owed to him being paid through a separate letter of agreement.

Multiple fighters vented their frustration over the pro wrestler’s top-shelf payout.

“CM Punk made $500k on his entry fight while the rest of us pay to fight?” wrote then-UFC bantamweight Cat Zingano. “Y’all should be ashamed UFC.”

“Nothing against CM Punk make half million for his MMA debut,” wrote former lightweight champion Rafael dos Anjos. “But I think champs should be [making] that too, people who dedicated [an] entire life.”

One thing that cannot be disputed is the fact that CM Punk’s presence at UFC 203 bolstered the event, leading to a reported 450,000 buys and generating $26,995,500 in revenue for the promotion.

UFC Anti-Trust Lawsuit Could Pay Fighters Massive Windfall

The ongoing anti-trust lawsuit against the UFC appears to be gaining traction, and fighters could receive a massive windfall of money for damages if the lawsuit were to pass. MMA journalist John Nash tweeted about his discoveries regarding the anti-trust lawsuit, and any fighter who fought in the UFC since 2010 will be entitled to […]

The post UFC Anti-Trust Lawsuit Could Pay Fighters Massive Windfall appeared first on LowKickMMA.com.

The ongoing anti-trust lawsuit against the UFC appears to be gaining traction, and fighters could receive a massive windfall of money for damages if the lawsuit were to pass.

MMA journalist John Nash tweeted about his discoveries regarding the anti-trust lawsuit, and any fighter who fought in the UFC since 2010 will be entitled to a part of the proposed $1.6 billion settlement:

The UFC’s huge sale last year for over $4 billion will likely work against them here, as the massive settlement could be viewed as coverable by the deep pockets of new owners WME-IMG.

For comparison, Nash says former UFC competitor Strikeforce paid their fighters 63 percent of their overall revenue. Meanwhile, economist Andrew Zimbalist denies the authenticity of the UFC’s claim of fighter/revenue numbers:

A group of fighters led by former UFC title contender Jon Fitch banded together in 2010 in an effort to create a fighters’ union. Fitch says any fighter who competed for the UFC between December 2010 to December 2014 are entitled to payouts unless they choose to opt out.

Economists actually place the money owed to said fighters could be three times as much as the $1.6 billion figure.

How do you see this lawsuit playing out? Will the fighters ever receive money due them?

The post UFC Anti-Trust Lawsuit Could Pay Fighters Massive Windfall appeared first on LowKickMMA.com.